Business Health Check Report: Marriott Hotel's Operations Analysis

This report provides a comprehensive business health check of Marriott Hotel, a multinational organization in the hospitality sector. It begins with an analysis of the company's purpose, mission, vision, and objectives, highlighting its strengths as a leading global hospitality provider. The report then delves into the factors impacting the business, including political, economic, socio-cultural, technological, environmental, and legal factors, using PESTLE and SWOT analyses to assess the internal and external environments. Porter's Five Forces are used to evaluate the competitive landscape. The report identifies areas for improvement in business operations, suggesting the use of Ansoff's growth matrix for strategic decision-making, focusing on market penetration and employee development. It emphasizes the importance of marketing activities, customer understanding, and training to achieve organizational goals. The conclusion summarizes the findings and recommendations for enhancing Marriott's performance and maintaining its competitive edge.

BUSINESS HEALTH
CHECK

Table of Contents
INTRODUCTION ..........................................................................................................................3
LO 1.................................................................................................................................................3
1.1 Analysing the purpose of business........................................................................................3
1.2 Various factors that have impact on the business.................................................................4
1.3 Determining potential improvement in business operations.................................................7
LO 2.................................................................................................................................................9
2.1 Reviewing the effectiveness of business...............................................................................9
2.2 Formulating a plan to improve the business.......................................................................11
LO 3...............................................................................................................................................12
3.1 Evaluating the present abilities of management as well as staff. .......................................12
3.2 Creating as well as justifying plan for development of new abilities in staff and
management..............................................................................................................................16
CONCLUSION .............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business health check can basically define as the activity which includes measuring an
effectiveness of the various business activities performed by firm. It is the procedure which helps
management in addressing those business functions or areas which require improvement.
Business health check can consider as evaluation of important elements of business. The main
benefit of business health check is that it provides management an ease in maintaining their
concentration on business. Business health check is basically a type of diagnostic assessment of
an enterprise. It is the procedure which assist management in analysing the internal strength and
weakness of organization.
The study emphasizes on addressing those variables which have significant effect on
business in context of Marriott hotel. It is basically a Multinational organization operating
business in hospitality sector. Report will include the internal as well as external analysis of an
organization. The business is or functions which requires improvement will be highlighted.
LO 1
1.1 Analysing the purpose of business
Marriott hotel is basically a global company which is operating business in hospitality
sector. Business entity offers accommodation as well as lodging facilities. Marriott is among one
of the leading organizations in hospitality industry. An enterprise has 30 brands and branches in
more than 130 countries. The mission of an enterprise to provide customers with quality services
and good experience. Vision of Marriott hotel is to become one of the premium service provider
as well as facilitator of leisure and holiday experience globally. Objective of an enterprise is to
assist customers in improving their lives as well as providing guest with good leisure experience.
Presently, Marriott is among the leading stagnation in hospitality industry. An organization has
achieved the 33 rank among the 100 best companies to work. Business entity operates approx
thirty-two brands at international level (Ketata, Sofka and Grimpe, 2015). Employees in
Marriott hotel mainly emphasizes on providing the premium quality as well as quick services to
customers. As an organization in delivering quality services to their clients, they have been
successful in gaining the customer loyalty. In addition to this, an enterprise also emphasizes on
delivering high level of comfort to their guests.

Marriott hotel is also concentrating on providing the high value proposition to their
guests by offering them good quality of products or services at reasonable price. Workers and
management in an enterprise is taking combine efforts for maintaining the balance between value
and quality in order to improve the guest experience.
The medium-term objectives of Marriott hotel is to develop the customer service skills in
their employees. An organization has set such objectives so that they could provide such
professional services to customers (Khan, Alam and Alam, 2015.). An enterprise has made plan
to concentrate on training and development of its workers so that their employees can develop or
improve their capabilities as well as knowledge. Human resource manager in Marriott hotel is
plan to organize training and development program for employees on quarterly basis.
Short term objectives of Marriott hotel is to increase their sales and profitability. In
addition to this, business entity intends to increase its market share. Marriott hotel in order to
accomplish the set short term organizational objectives has plan to conduct the marketing
campaign. Business entity has decided to increase its investment in the development of
multichannel distribution channels.
Long term target of Marriott hotel is to maintain its long-term sustainability in highly
competitive business environment. In addition to this, business entity also intends to maintain its
leading position in an industry. The other long-term objective of the Marriott hotel is to enhance
the quality service.
1.2 Various factors that have impact on the business
There are various factors that affect negatively or positively to the products and services,
operations and overall organisation, including internal and external factors.
PESTLE Analysis
 Political factor: Marriott Hotel operates at global level thus, political stability is the
foremost need for the success as it directly influences the number of tourists, visitors
(Banks and et. al., 2017). Along with it, sudden enhance in tax rates influence the
political stability that directly affect the accommodation services.
 Economic factor: This factor have an intense influence on luxurious hotel like Marriott
International. Fluctuation in currency affect the income of population that drive down or
up the sales of services that create a challenge for Marriott International to manage their

prices. To overcome the situation, Marriott International develop services with moderate
price range that attract wide consumers.
 Socio-cultural factor: Culture and attitude of society and people have directly impact on
the operations. People prefer such hotels for their corporate meetings, refreshment trips or
casual outings (Carraher, 2018). This brings an advantage for the hotel to meet the
satisfaction of the guests. Apart from that, price range can be negative point for the
Marriott International.
 Technological factor: This factor have positive effect on the hotel as it brings
opportunity to expand the services under more technological advancement. The hotel
offers digital check-in and out facilities, online booking and collecting further
information, etc.
 Environmental factor: As Marriott International run their business in hospitality
industry it is essential for them to follow ethical and sustainability act that lead company
effectively towards responsible organisation in the society. Apart from that, it also
includes sudden climate change, flood, increase in pollution that affect the consumer
behaviour towards the company (Madar, 2017).
 Legal factors: Marriott International is responsible to follow all the laws and legislation
developed by the country regarding employees, environment, taxes, etc. This make
positive impact on the brand image and enhance the goodwill. Other than that, the
company strictly implemented all the necessary laws in the industry that ensure that they
are treating the employees fair and operating the business as per the government
regulations.
SWOT analysis
Strength
1.1. Proactive and innovative-Proactive and innovative- The hotel is one of the most innovative hotels ranked as per
Forbes. Marriott International is centred on innovation (Mak and Chang, 2019). Their
strength is that they stay proactive and innovative and attempt various way to find how
they can enhance consumer experience.
2. Top position in competitive landscape-Top position in competitive landscape- It is the largest hospitality industry across the
world in terms of value sales worldwide. Marriott International has the largest number of
rooms at global level. The company have strength of taking advantage of growing

demand of luxury accommodation with overall capacity of 117000 rooms. Along with it,
it has 8.4% of market share worldwide.
Weakness
1.1. Lack of low cost lifestyle brand-Lack of low cost lifestyle brand- This is the biggest weakness of Marriott International
that they do not have a low-cost lifestyle brand in their products and services portfolio
(Page, 2015).
2. High attrition rate in employees-High attrition rate in employees- It has been analysed that, in compare to other
organisation, Marriott International has high attrition rate as they spend a lot on training
and development of the staff.
Opportunities
1.1. Lower Inflation rate-Lower Inflation rate- Low inflation rate in UK brings more stability in the UK market
that enable credit at lower interest rate to the consumers of the hotel. This is a great
opportunity for the company to expand their products and services and try to operate in
new marketplace.
2. New Technology-New Technology- New technologies give an opportunity to the business to practices
differentiated their strategy of pricing in the new market. This also enable company to
maintain loyal guests by providing great services (Page, 2015). Various technologies in
the industry help the company to beat the competition and attract consumers.
Threats
1.1. Intense competition-Intense competition- there is a strong competition of Hilton Hotel for Marriott
International. The competition in the marketplace enhance by stable profitability in the
industry that put pressure on the profitability of Marriott International and on the overall
sales (Mak and Chang, 2019).
2. Currency fluctuation-Currency fluctuation- as the hotel operates in various countries and exposed to fluctuation
in currency in number of markets appears as a threat for the hotel that affect the consumer
behaviour and sales of the company. This also affect the regular operation in the industry
and technological implementation.
Porter's five forces
 Bargaining power of buyers-Bargaining power of buyers- The bargaining power of Marriott International is high as
the hotel is based on luxury services and have high competition that means the consumer
base is also high (Madar, 2017). As the bargaining power of the consumers is high they

try to drive price down of the products and services and limits the potential of Marriott
International to gain sustainable profit.
 Bargaining power ofBargaining power of supplier-supplier- The bargaining power of supplier is low as the hotel is
greatly depends on the booking agencies and online travel agents. Thus, the supplier
power does not influence competitiveness. Company provides quality products to the
consumers and require high quality supplier for the company that limits the function and
power of the suppliers.
 Threat of substitute products-Threat of substitute products- There are some substitutes for the hotel but they are not
able to provide same services as Marriott provide to the consumers so the threat is on
average level (Carraher, 2018). Although the substitute product threat is on average level,
company is required to continuously invest into R&D to overcome the issue.
 Threat of new entrants-Threat of new entrants- The threat of new entrants is low due to huge capital investment
and economies of scale as well as high operating cost. Along with it, Marriott
International build a strong image in the marketplace and it is difficult for the new
competition to break this.
 Competitive rivalry-Competitive rivalry- Marriott International faces high competition that put pressure on
the company to lowering or enhancing their price and also affect the profitability of the
industry. Intense competition makes difficult for Marriott International to earn
sustainable profit (Banks and et. al., 2017).
1.3 Determining potential improvement in business operations
Marriott hotel is performing well in the market, but still there is much scope of
improvement in b business operations. As purpose of an enterprise is to increase sales and
profitability, an enterprise needs to concentrate on bringing improvement in its marketing
activities. Manager in an organization can utilize Ansoff growth Matrix as it will help them in
determining the alternatives options which can be utilized for enhancing the business operations.
In addition to this, management in firm is required to concentrate on development of their
employees which is very much essential for deriving company towards accomplishment of
desired organizational goals. An enterprise needs to provide special training to the employees
those who are responsible for performing marketing functions for an enterprise. Manager in an
enterprise need to conduct the depth analysis, and they also should develop the understanding
about the behaviour of the target customer group before development of marketing plan. The

management in Marriott hotel can use the Ansoff matrix as it will assist them in developing the
understanding about the various types of risk associated with the different strategic options. In
context of marketing the different options of bringing improvement in particular functions are:
Market penetration: It is the strategy according to which Marriott hotel can sell it existing
products or services in which an enterprise is already selling its goods. Marriott hotel in order to
attract the customers and influence people need to reduce the prices of their goods or services. In
addition to this, business entity also needs to bring improvement in their distribution network. An
organization is required to make more investment on promotional activities. Management can
concentrate on increasing as well as improving productivity (Bohari, Hin and Fuad, 2017.). An
organization need to take high initiative for maximizing utilization of its distribution network.
Business entity can enter into contract with restaurants, bars, supermarkets etc.
Market development: Marriott hotel for accomplishing its desired business objectives can sell
its existing products into new market. It is the promotional strategy which is related to
approaching to new customer segment. Market development strategy will assist organization in
achieving the objective of increasing the customer base as well as market share. Marriott hotel
can expand its business in developed nation. As it is the strategy which will help an enterprise in
fostering market growth.
Product development: By utilizing this strategy, Marriott hotel can sell innovative products to
existing market, as this tactic will help an enterprise in increasing sales and profitability.
Market diversification: In relation to Marriott hotel, an enterprise can sell its innovative goods
in the new market (Rubens and et.al., 2018.). There are two types of diversification for which an
organization can opt for these are related and unrelated. In context of related diversification,
Marriott hotel can enter into new market with innovative item which is somewhat matches with
the existing goods offered. Unrelated diversification strategy is related to selling the completely
innovative good in new market.
In addition to the above strategies, Marriott hotel can outsource some of its non-core
business activities, as it is the strategy which will help an organization in bringing successful
improvement in important business functions.

In context of Marriott hotel, an organization can select the market diversification strategy.
The particular strategy has been suggested, as it is easy to be implemented. In addition to this,
market diversification strategy will help an enterprise in increasing the customer base which is
very much essential for fostering business growth. Market diversification can be considered to be
as riskiest strategy but still can assist Marriott hotel in rebuilding or enhancing its image in the
market. In addition to this, by implementing the market diversification strategy, an enterprise
will able to earn high profit (Shaw, 2016). Marriott hotel can have broad product portfolio, as it
will help them in minimizing the chances of risks.
LO 2
2.1 Reviewing the effectiveness of business
Business effectiveness is basically a concept which is related to the way particular
organization has been successful in accomplishing desired objectives. It can also be referred to as
quality of outcomes which has been generated after the completion of particular activity by
Illustration 1: Ansoff Matrix
(Source: Ansoff Matrix: How to Grow Your Business? , 2017)

manager as well as employees in an organization. In context of Marriott hotel, an enterprise
provides more customized options to customers. Marketing activities of Marriott hotel
considered to be as effective, as it has assisted an enterprise in increasing sales as well as
profitability. The marketing campaign organized by an organization is effective as it has proven
to be beneficial in terms of generation of brand awareness (Adams, Akyol and Verwijmeren,
2018). Marriott hotel has implemented an effective marketing strategy, for instance, the
promotional strategy is developed by marketing manager in Marriott hotel considering in mind
the behaviour of target customer group.
Overall, Marriott hotel is performing good and promotional activities of firm is highly effective,
as it has provided an organization an ease in accomplishing desired objectives.
Marriott hotel provide wide varieties as well as high quality of products or services to
customers such accommodation, food and lodging facilities. An organization has adopted the
customer centric approach for developing goods or services which has enables an enterprise in
delivering the high level of satisfaction to customers. Business entity utilizes various marketing
channel such as media, TV, radio for promoting goods or services (Tasker, 2015).
In context of Marriott hotel, the staffing practices of human resource management in an
organization includes workforce planning as well as recruitment. Human resource management
in an enterprise provides employees with competitive salary packages and other non-financial
incentive that has assisted an enterprise in attracting a greater number of customers.
Hospitality sector is the most growing sector that makes the effective working process
and also helps to build up the managing challenging task (Ling, Liu and Wu, 2017). Hotel
represents the image that define the work opportunity or growth in the business context.
However, hospitality sector also influenced by the labour market that is available to it and make
the business more educational and leading. Another effectiveness of the hospitality sector is to
giving managerial and effective work performance.
Training and development are the most crucial concept in hospitality sector that define
the importance of employees and their effectiveness of the business objectives. Apart from that,
Hospitality sector also influenced by the organisation performance and also contribute in the
sustainability development of environment by implying in the green projects. However, Marriott
is the leading hospitality chain that motivates the environment more effectively and energetic in

terms of effective management (Ling and Wu, 2017). Another effective performance they
perform that is trained their employees in the best possible manner.
2.2 Formulating a plan to improve the business.
It is the necessary to improve the business through formulating the plan which involves
marketing planning, sales and productivity, financial management system, staff and management
roles and responsibilities as well as planning performance monitoring within the business.
Marketing Planning: It is necessary to promote the goods and services within the
market. Therefore, marketing planning is very essential part of business plan which document
that highlight marketing approaches and methods for upcoming year or month. It involves
mission and vision, marketing objective, strategy and description of current marketing position
of Marriott hotel in hospitality industry (Al-Mashari and Al-Mosheleh, 2015). Marketing
planning is procedure of conducting and determining objective of marketing of the firm and
collecting approaches and tactics to accomplish them. This can aid to increase the consumer
satisfaction and sales of the business. Also, this can assist to enhance productivity and brand
image of the hotel in the hospitality industry.
Financial Management System: It is the necessary to manage the financial resources for
improving business. It is the method and software which company like Marriott hotel utilize to
oversee and govern their income, expenditure and assets with the aims of increasing profitability
and assuring sustainability. There are some characteristics of effective financial management
system involves keeping all payments and receivable transparent, track of liabilities, balancing
multiple bank accounts and reducing overall paper activities (Brinckmann and et.al., 2019). Also,
Marriott hotel need to formulate and effective budget for marketing of products and services,
giving salary and wages to employees in the workplace. This can aid to increase the consumer
satisfaction and sales of the business. Also, this can assist to enhance productivity and brand
image of the hotel in the hospitality industry.
Management of staff: It is the very essential part of business in which managing
appropriate and effective employees or staff within the business. For that, Marriott hotel will
make efforts to recruit and select the skilled and qualified employees for effective working in the
firm. Also, they make efforts to assign the roles and responsibilities according to candidate's
qualification and experience in the workplace (Nofal and Yusof, 2016). With this, worker highly
contribute in all the business activities like marketing, sales, managing financial resources and

improving the business performance in the hospitality industry. This can aid to increase the
consumer satisfaction and sales of the business. Also, this can assist to enhance productivity and
brand image of the hotel in the hospitality industry.
Performance monitoring: It is the very important to monitor the performance of all
employees and resources by which Marriott hotel's owner needs to monitor execution of workers
on the daily basis. With this, employees highly contributed and worked in different activities of
businesses such as marketing, sales, managing financial resources and improving the business
performance (Al-Mashari and Al-Mosheleh, 2015). This can aid to increase the consumer
satisfaction and sales of the business. Also, this can assist to enhance productivity and brand
image of the hotel in the hospitality industry.
LO 3
3.1 Evaluating the present abilities of management as well as staff.
Technical: Technical skills are interconnected with computer program. However, this
skill is comprised the knowledge and capabilities to perform specialised tasks related to a
specific field (Helmreich, Klinect and Wilhelm, 2017). Technical skills are must in employee or
staff within the hospitality sector that also makes the business more competitive. Technical skills
are the most necessary and effective learning objectives that makes the better decision making
approach. Apart from that, it also helps to discover the new learning objectives and makes the
best service opportunity and goals. Technical experts perform better job to gained the final
outcome performance. However, the technical skills are refer to the best management goals and
manage the work more effectively.
Operational: Operational management skills is the another most effective and significant
skills within the organisation. That motivates employees or organisation to gain the competitive
advantage. Along with that, operational skills have required for maintaining the effective and
successful planning and results. Responsibilities may include interviewing, selection and hiring
the existing task and performance. Along with that, operational skills help to make the day to day
activities more proper and effective as per the business plan. Operation manager must have
responsible to interviewing selection and hiring employees. Operational managers in almost any
business are key personnel in upper level management that make sure the company is performing
to its best potential (Sennewald and Baillie, 2015).